South Africa drafts rulebook for cross-border crypto transfers

South Africa has proposed a draft rulebook for cross-border crypto transactions that would require offshore transfers to move through authorized providers and be reported to the South African Reserve Bank's Financial Surveillance Department, or FinSurv. The National Treasury and the South African Reserve Bank said the measures are meant to reduce regulatory arbitrage and help detect illicit financial flows, while keeping crypto outside legal-tender status and applying the same framework across digital assets. The draft Crypto Asset Manual expands on the April 17, 2026 Capital Flow Management Regulations that first brought crypto into South Africa's foreign exchange regime after the 2025 Standard Bank v SARB ruling exposed a gap in the old definition of capital. Under the proposal, reportable transfers include movements from a locally authorized Crypto Asset Service Provider to an offshore provider or to a privately controlled non-custodial wallet, while domestic rand trading through local providers would stay outside the reporting net. April's earlier draft also proposed declarations for holdings above a threshold, powers for enforcement officers to demand private keys, and penalties of up to R1 million or five years in prison for non-compliance. Comments on the latest proposal are due by Sept. 30, as South Africa joins a broader global push for enforceable cross-border crypto rules.